Before bitcoin, I thought I knew money. I am engaged in financial work, often mobilize a lot of money, feel that I have a good understanding of all this. Then, in early 2014, I watched “what is bitcoin?” Video（ https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/bitcoin/v/bitcoin-what-is-it ）Realizing that I don’t understand money at all. I understand numbers and confuse them with money, just like most people in finance today.
Start to dabble in “what is money?” People with themes are always attracted to bitcoin, whether they believe in its potential or not. It’s fascinating. It allows people to explore deeper issues and understand the role of money in the development of our civilization. It also attracts people to imagine what tomorrow’s money will look like.
Now, cryptocurrency assets are on the way to change our understanding of the word “money”. It is natural to question the meaning of the word “payment”.
Brian Armstrong, founder of coinbase, spoke convincingly about what “pay” might mean and interpreted the recent acquisition announcement of ice, the owner of the New York Stock Exchange and the New York cryptocurrency exchange bakkt.
Last week, the Wall Street Journal reported that ice made an offer for eBay, which confused many people. Why would owners of the New York Stock Exchange buy such an online auction and shopping site?
We’re not the only ones to wonder; shareholders don’t believe it. The offer was made without formal negotiations, but was withdrawn two days later.
Bakkt took a big turn last week, announcing its acquisition of bridge2, a provider of point clearing solutions, to support the development of consumer oriented digital payment applications. Why does an institutional cryptocurrency exchange want a consumer grade payment application? It makes sense to add new derivatives. Expanding the scope of assets also makes sense. But how does consumer payment fit into institutional investment?
From Armstrong’s point of view, however, the acquisition of bridge2 and the termination of the acquisition of eBay make sense. It’s not just about payments, it’s about how cryptocurrencies redefine payments.
We’re not just talking about new P2P payment protocols like bitcoin. We are also exploring the meaning of “payment”. If I read an article in exchange for watching ads, is this payment? What if you use tokens? What if the smart contract escrow the advance payment and hand over the actual expenses to the network provider?
Once everything is in place, it could also have a broader impact on securities. Imagine paying for the music you listen to with a fraction of your spotify stake. Is that payment?
Ice seems to be expecting that the way to make cryptocurrency mainstream is to integrate it into applications that can make large payments. With the support of the owners of the world’s largest stock exchange, bakkt seems ready to initiate a new dialogue on what we have long taken for granted. In addition, in this process, the traditional capital market and cryptocurrency market are combined more closely.
This is not about who makes concessions in the encryption market and the traditional capital market, but about the integration of the two into a new market.
Editor in charge: CT